Former Nissan chairman Carlos Ghosn may be released after Japan court rejects detention extension

TOKYO (BLOOMBERG) – A Tokyo court has rejected prosecutors’ request for an extension in the jail detention of Carlos Ghosn, boosting his chances of mounting a defence against claims of understating his income that cost him the chairmanship at Nissan Motor Co. The Tokyo district court also rejected an extension for Ghosn aide Greg Kelly, according to a statement from the authority on Thursday (Dec 20). Rejection indicates Ghosn could be released on bail “soon,” national broadcaster NHK said. The 64-year-old was whisked away from his corporate jet upon landing in Tokyo on Nov 19 and was indicted three weeks later, while simultaneously being re-arrested for concealing income for another time period. Ghosn has denied wrongdoing. The French-Brazilian – widely credited with saving Nissan from failure and bringing it together with Renault SA – stands accused for under-reporting his income by tens of millions of dollars. The arrest has heightened tensions between Nissan and Renault, casting doubt over the viability of their alliance and highlighting the rift between the French and Japanese manufacturers over their respective powers within each others’ boardrooms. If proven, Ghosn’s alleged offence may carry a sentence of as much as 10 years. The formerly high-flying executive has also been accused by Nissan of misusing company funds, including to buy homes from Brazil to Lebanon. In addition, Nissan as well as former representative director Kelly, who was accused of wrongdoing and arrested with Ghosn, were also indicted. Under the Japanese system, indictment allows prosecutors to lay formal… [Read full story]